Rolta India extends losses, stock down 6 percent

Mumbai: Shares of IT firm Rolta India on Friday further declined by nearly 6 percent after a research report alleged irregularities in its financial, even as the company termed it as "malicious" attempt to pull down its stock price.

The stock plunged 5.65 percent to Rs 145.20 per scrip on the BSE. At the NSE, it dipped 5.75 percent to Rs 145 apiece. In the previous session, Rolta India shares had slumped by over 12 percent.

A little-known US-based research firm Glaucus Research reportedly had said that Rolta India fabricated its reported capital expenditures in order to mask that it has materially overstated its EBITDA (Earnings before income tax, depreciation and amortisation).

Rolta India said it is exploring legal action against the research firm to protect its interests. In a clarification to the BSE on Thursday, Rolta India said, "This undated Glaucus Research Report is completely baseless and has factual errors and inconsistencies.

"The Glaucus Research Group has never contacted Rolta to verify any facts. This report is malafide, malicious and aimed at misleading investors with an ulterior motive - so that Glaucus Research Group can benefit from its short interest in Rolta's bonds."

The company is exploring all avenues including legal remedies to protect its interests, the filing had said.